The Small Business Tax Help Blog

Posts Tagged ‘business’

Question: I am self employed and I made US$25K 2006, & I need to pay 30% of money to my business partner in Malaysia?

How do I report this expense in my tax return, I did not make that much mony last year, but I need to pay my foreign business partner for 30% of my profit because it is our agreement. And I am self employ doing importing and exporting. Do i report this as commission expense or some kind of profit sharing?? Please help me in what schedule?? Is it Legal??

Answer: You have a partnership. You must therefore file a partnership return, Form 1065, and allocate the net income between you and any partners. Your foreign partner will need an ITIN and may need to file a US 1040NR return. (If he refuses to get an ITIN, I’d hold back any payments to him until he does so and pay the taxes on it as your income. Then file amended returns once he comes to his senses.)

TSH Resources posts higher Q1 pre-tax profit

TSH Resources Bhd registered a higher pre-tax profit of RM33.640 million for the first quarter ended March 31, 2011, compared to RM17.918 million in the same period last year driven by strong plantation earnings. The company’s revenue increased five per cent to RM252.599 million from RM240.476 million previously. “Overall, the palm and bio-integration business segment’s performance improved as …

Launch Event for Malaysia Withholding Tax & Treaties Online, Kuala Lumpur, 18 August 2010

Question: which ID number should I put on my it-2 tax form for NY state?

I am talking about the employer Identification number, which number the state one or federal one. Also please provide proof so I could be able to trust you, not to offend but you know. I am would understand if someone did not trust me either.

Answer: Use the Federal number. IT2 is a transcription of Form W-2 so you use the employer’s FEIN. According to the instructions on the form, the box numbers on the form coincide with the box numbers on Form W-2. Box b on Form W-2 is the FEIN, so that’s what you put in box b of IT2.

IRS Struggles to Control Taxpayer Identity Theft

The Internal Revenue Service found over 245,000 identity theft incidents last year, according to a new government report that assessed the IRS’s efforts to stem the growing problem, as victims testified before the Senate.

ID Verification – 5 Hi Tech Tools Fight Fraud @ REALSearch.com

Question: How do I get information regarding Non profit grants?

I am trying to start a non profit business called a Adult Family Home. It’s a facility where you care for four or less persons in your home. You care for older adults or someone with a disability have my certifications, program statement, EIN, name and business proposal. Now I just need the funding to complete the deal and find a place of residence for the home. Please lead me in the right direction. Thank you.

Answer: Your best bet is to seek for private grants or grants from private foundations.

The best resource for this is Foundation Center http://www.fdncenter.org . They have a very good database covering all organizations giving grants and you can find foundations that are interested in supporting your type of cause. However, it’s a subscription based website ($19.95 per month I think is the cheapest subscription price). But it certainly is worth the fee. You can subscribe one month, and make sure you get all the info you need and then stop the subscription.

If you want to try federal sources, you can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov – these are two sites created by the federal government to provide transparency and information on grants.

CFDA has several ways to search for grants. I suggest you search by beneficiary and select Private Non Profit Organization and you can find listings of grants available http://12.46.245.173/pls/portal30/CATALOG.BROWSE_BENEF_RPT.show

However, to be able to get grant awards, you need to be 501C(3) certified from the IRS http://www.irs.gov/charities/charitable/index.html

NEWS / AKTUELL

Die Apfelsorte, die fast aufgegeben wurde, weil sie angeblich zu klein war, kehrt diese Woche in die Supermarktregale zurück und ihre kleine Größe hat sich jetzt als Stärke erwiesen.

Ein Name im Kristall

Question: who do you report disability and dole cheats to?

There is a lot of so called ex-pats living in spain claiming disability and dole!!!!!!!!
While running businesses here in spain neither paying taxes in either country but claiming the benefits

Answer: See the reporting benefit fraud link on the right hand side of this:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/BeginnersGuideToBenefits/index.htm?CID=emc&TYPE=sponsoredsearch&CRE=Benefits

Business seeks 12-year tax break

Edwardsburg operation set to expand, owner says. EDWARDSBURG — The Edwardsburg Industrial Park is nearly filled, and one occupant is expanding his business.

Speaker IBCPIB™ 2010 – Francis J. Vassallo

Question: Tax Help?? Independent Contractor~I do NOT own a business, my “clients” 1099′d me?

What form do I use to file for all my itemized deductions (time, travel, planning, catering, budgeting, meetings with clients for menus, etc…..) I’m pretty lost……Any help would be great, I posted this earlier, and I got some info on Owning a Business…….I don’t own a business…..Do I use a 1040 long form or is there another one?? I was told Schedule C and Schedule SE were used, but those are for business owners, which I”M NOT…….Any help would be great…..And I know it’s the last minute, but I’m also filing an extension…….Thanks in advance……
I’m a private chef for 3 families here in Encinitas…….I was 1099′d by ALL of them, I didn’t know that I was going to be, I thought I was going to be able to fill out a 1040 form. I may be a culinary genuis, but when it comes to taxes, I’m a complete moron, obviously…….

Answer: First, I realize you do not own a business. However, as an independent contractor, you are considered self employed, and therefore you file taxes as though you were running a business. Your business name is simply your name, and your business ID number is just your social security number. Basically, YOU are the business. It doesn’t matter that you don’t have a business license, that’s not an issue, but for income tax purposes, you have to file as though you were running a business.

If you’re just starting now, I highly suggest you file an extension and include whatever payment amount you can afford. Then hire a tax pro or accountant to help you. Anyway, this is what you do:

Use a 1040 long form.

Attach schedule C with all your income and business related expenses. Schedule C is designed to help you determine your net profits from self employment. The net profits go onto your 1040 as income.

If your net profits were more than $400, you also need to include schedule SE. This schedule computes your self employment tax. Its 15.3% of your net profits. This is the money you would have had taken out of your paycheck (plus your employer’s contribution) for social security if you had a regular job. The total self employment taxes will go onto your 1040 as taxes owed.

Just to clarify. A deduction is something that you are allowed to deduct from regular income taxes, such as mortgage interest or charitable donations. An expense is something where you had to spend money as part of your “business” (or independent contractor work), so it reduces your net profits, and lowers your personal income.

Adjusting Your Withholding and Estimated Tax Payments

Now is a good time to look at the amount of tax that you have withheld from your pay, pension or Social Security, as well as any estimated payments that you make throughout the year.  The amount of any payment that you had to make on April 15 should be fresh in your mind – and if it was a sizeable amount you should review the situation and quite possibly adjust your withholding or estimated …

1099 Independent Contractor vs. W-2 Employees